Financial Performance - Mortgage volume increased to $314.96 million for the three months ended February 29, 2024, compared to $267.90 million for the same period in 2023, representing a 17.55% increase[13] - Net sales revenue rose to $343,305 for the three months ended February 29, 2024, from $207,081 in the same period last year, marking a significant increase of 65.96%[13] - Total revenue, net for the six months ended February 29, 2024, was $1.35 million, a slight increase of 1.36% from $1.33 million for the same period in 2023[15] - Sales revenue decreased from $8.46 million in the six months ending February 28, 2023, to $8.09 million in the six months ending February 29, 2024, representing a 4.39% decline[22] - The company experienced a net loss attributable to Pineapple Financial of $(1.53) million for the six months ended February 29, 2024, compared to a net loss of $(1.40) million for the same period in 2023[16] - The company’s adjusted EBITDA for the six months ended February 29, 2024, was $(1.11) million, compared to $(67,185) for the same period in 2023[16] Expenses and Cost Management - General and administrative expenses decreased by $72,135 from $1,104,082 during the six months ending February 28, 2023, to $1,031,947 during the six months ending February 29, 2024, a decrease of 6.53%[27] - Salaries, wages, and benefits decreased to $1.19 million for the six months ended February 29, 2024, from $1.27 million for the same period in 2023, reflecting a 6.92% reduction[31] - Advertising and marketing expenses decreased to $404,017 during the six months ending February 29, 2024, compared to $469,321 during the previous six months, a decrease of 13.92%[30] - Stock-based compensation expense was recognized as $0 for the six months ended February 29, 2024, compared to $33,041 for the same period in 2023[53] Cash and Liquidity - As of February 29, 2024, the cash balance was $1,339,618, a significant increase from $79,976 on February 28, 2023[40] - The Company has a liquidity position of $1.340 million in cash and cash equivalents, but liquidity is under pressure due to operational expansion and technology investments[41] - As of February 29, 2024, the Company reported total cash of $1,339,618 and an investment valued at $9,984 under Level 3 fair value measurements[63] Investments and Shareholder Actions - The Company issued 875,000 shares through an initial public offering at $4.00, receiving $2.752 million after expenses[39] - The Company invested in a commercial mortgage firm, MCommercial, representing 5% of total issued shares, enhancing product offerings and revenue potential[49] - A 1-for-3.9 reverse stock split was completed on July 6, 2023, retroactively adjusting share numbers and prices[55] Internal Controls and Compliance - The Company is implementing plans to improve internal controls over financial reporting due to identified deficiencies[56] - Dues and subscriptions increased from $118,568 during the six months ended February 28, 2023, to $152,441 for the six months ended February 29, 2024, representing a 28.57% increase[25]
Pineapple(PAPL) - 2024 Q2 - Quarterly Report